Why Rental Property ROI Isn't As Important As You Think



Published
The ROI (return on investment) of a rental property is arguably one of the most calculated metrics when deciding whether or not to invest. Even veteran landlords tend to look at ROI as the sole metric that decides whether or not something is a “deal”. But, in the 2022 housing market, more and more landlords are seeing a massive boost in equity, and new investors are finding cash flow harder and harder to find. Has ROI kept its relevance?

Welcome back to another episode of Seeing Greene, where expert investor, agent, author, and real estate investor, David Greene, takes time to answer the BiggerPockets community’s most top-of-mind questions. In this episode, we touch on topics such as how to scale your portfolio on limited funds, whether or not to invest in tenant-friendly states, long-distance house hacking, and the foolproof way to decide whether to hold or sell in 2022.

Want to ask David a question? If so, submit your question here (https://www.biggerpockets.com/david?utm_source=youtube&utm_medium=description&utm_campaign=none) so David can answer it on the next episode of Seeing Greene. Hop on the BiggerPockets forums and ask other investors their take, or follow David on Instagram to see when he’s going live so you can hop on a live Q&A and get your question answered on the spot!

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Join BiggerPockets for FREE:
https://www.biggerpockets.com/signup?utm_source=youtube&utm_medium=description&utm_campaign=none
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Ask David Your Real Estate Investing Question:
https://www.biggerpockets.com/david?utm_source=youtube&utm_medium=description&utm_campaign=none
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Books Mentioned in Today’s Show:
BRRRR: https://store.biggerpockets.com/products/buy-rehab-rent-refinance-repeat?utm_source=youtube&utm_medium=description&utm_campaign=none
Long-Distance Real Estate Investing: https://store.biggerpockets.com/products/long-distance-real-estate-investing?utm_source=youtube&utm_medium=description&utm_campaign=none
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A WAY Better Metric than Cash on Cash Return:
https://youtu.be/pn_o59mVoMk
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You Should Never Sell Off Your Real Estate Portfolio, Unless…
https://www.biggerpockets.com/blog/dont-sell-unless?utm_source=youtube&utm_medium=description&utm_campaign=none
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Investment Property Loans—The Ultimate Guide to Funding Your Deals
https://www.biggerpockets.com/blog/2013-06-21-investment-property-loans?utm_source=youtube&utm_medium=description&utm_campaign=none
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Follow David and BiggerPockets on Instagram:
@davidgreene24 or https://www.instagram.com/davidgreene24/
@biggerpockets or https://www.instagram.com/biggerpockets/
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Connect with David on BiggerPockets:
David: https://www.biggerpockets.com/users/davidgreene24?utm_source=youtube&utm_medium=description&utm_campaign=none

Episode 603

Show notes at: https://www.biggerpockets.com/blog/real-estate-603?utm_source=youtube&utm_medium=description&utm_campaign=none

00:00 Intro
03:07 Quick Tip
04:07 How to Scale Your Portfolio Faster
11:07 Investing in a Depopulating Area
16:45 Long-Distance House Hacking
21:02 Critiquing the Cash Flow Argument
30:30 Investing in Non-Landlord Friendly States
33:57 What Do You Think of Seeing Greene?
34:51 Hold for Cash Flow or Sell for Capital?
48:20 Maxing Out on Mortgages
51:21 Investing FOMO and Buying Now or Waiting
56:22 Ask David Your Question!
Category
Management
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